Mumabi: Residents of a Khar housing society received high prices for their 1-BHK flats when the city based Parinee Developers spent between Rs. 4 Crore to Rs. 4.5 Crore for a one-BHK flat and Rs. 5 Crore to Rs. 5.5 Crore for a two and-a-half-BHK.

Parinee plans to demolish the buildings and set up a high-end residential tower, reports Nauzer K Bharucha from Times of India.

The real estate experts warn these huge amounts may send wrong signals in the redevelopment market, unnecessarily create hype and raise expectations of other housing societies in the area. However, Parinee said it is paying this astronomical price only because the society has utilized barely 40 percent of its floor space index (FSI).

The developer has already bought out 20 of the 37 flats in the society and said it is negotiating with the remaining flat owners. "We are finalizing the purchase of the remaining 17 flats. Our acquisition cost for all the flats is around Rs. 200 Crore," said a spokesperson for the developer.

The society comprising six buildings, each ground plus two floors, is spread over an area of 5,570 square yards (over an acre) with ample open spaces and car parking. The one-BHKs have a carpet area of between 580 to 625 sq ft while the two BHKs are between 800 to 900 sq ft in size.